The Incentive Plan Lost Adequacy As A Motivational Instrument Essay

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In the beginning, the system consistently paid significant incentives. In the long run, this alerted workers to view the incentives as a major aspect of their normal pay and not as motivating force to move forward. The incentive plan lost adequacy as a motivational instrument. The employees’ mentality is that of Vroom Expectancy Theory, “in which motivation is a product of three elements: valence (how much one wants a reward), expectancy (one’s estimate of the profitability that effort will result in successful performance) and instrumentality (one’s estimate that performance will result in receiving reward)” (Newstrom, 2015 p.131-2). When cutbacks occurred, remaining workers became insecure in their job and influenced their yearning to perform. They did just what was expected of them to stay employed and nothing additional. “Employees were not compensated for seven months due to low productivity and profitability, which made the employees furious and distrust the plan” (Beer & Collins, 2008 p.2). This is adequate evidence that supports McGregor’s Theory X and Theory Y.
Despite the fact, that management was fully aware of the employees’ grievances and the need to redesign the incentive plan, management does nothing to ratify their complaints. Evidently, Engstrom management team is not meeting the mental needs of the workers and breaks Newstrom implication of the "unwritten mental contract that workers sign upon employment with the company” (Newstrom, 2015, pg. 87-9). As a

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